Question: The discounted payback rule may cause: 1 - projects to be incorrectly accepted due to ignoring the time value of money. 2 - 3 -

The discounted payback rule may cause:
1-projects to be incorrectly accepted due to ignoring the time value of money.
2-3-projects with discounted payback periods in excess of the project's life to be accepted.
3-some projects with negative net present values to be accepted.
4-the most liquid projects to be rejected in favor of less liquid projects.
5-some positive net present value projects to be rejected.

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